Is m-commerce set to take off in 2016?


According to Bizrate Insights, mobile website purchases will increase by as much as 68 percent in 2016. The peak volume during the 2016 holiday season is projected to reach as high as 42 percent in November, representing nearly half of all online orders.
Not surprisingly, the gains are expected to be driven by smartphones. Phones will represent 33 percent of all online orders in November, predicts Bizrate. Meanwhile, in the absence of meaningful innovation, tablet purchases will stagnate or decline slightly.
Data for the study was collected from over 540 million online purchases over the Bizrate Insights Network during July 1, 2013 through Dec. 13, 2015. The data does not include in-app purchases.
While estimating that only 1.6 percent of retail sales in the U.S. occurred on smartphones in 2015, eMarketer likewise predicted, “That’s going to change in 2016, thanks to moves by the biggest digital companies — Apple, Google, Microsoft, Facebook and Amazon — to simplify the transition from mobile shopping to mobile buying.”
The projections come after Adobe found smartphones generated a record 22 percent share of all online sales on Black Friday, 70 percent more than in 2014. Tablets drove 15 percent of online sales on Black Friday, a two percent decrease year-over-year. For Cyber Monday, IBM found smartphones drove 15.2 percent of online sales, up nearly 70 percent over 2014 and exceeding tablets at 12.4 percent.
Bigger screens, improved functionality and emerging mobile pay options are among the factors expected to support smartphone purchases.
Hayley Silver, VP, Bizrate Insight, a division of retail marketing vendor Connexity (formerly Shopzilla), suggested that retailers prioritize making it easy for consumers to shop their websites via mobile devices over making changes to desktops and apps in 2016. Ms. Silver said, “Considering the percentage of mobile website purchases projected for 2016, focusing exclusively on your in-app experience may alienate new visitors, thwart conversion or damage your brand.”
- mCommerce Projected to Grow by 68 percent in 2016 – Connexity
- Trends for 2016: Six Predictions for What Will Happen – eMarketer
- Why is smartphone shopping taking off? – RetailWire
- Mobile Purchases Could Grow Nearly 70 Percent In 2016 – Footwear News
Do you expect m-commerce to take off in 2016? What are the biggest pain points retailers should be addressing to ease the transition?
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12 Comments on "Is m-commerce set to take off in 2016?"
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M-commerce will continue to be a larger part of online sales in 2016 as smartphone technology continues to improve. From a consumer standpoint, the big challenge is for the retailers to capture this movement by improving the functionality of their mobile sites. This includes making the purchase transaction more efficient and making the data to make the purchase decision more easily accessible.
Absolutely. With each of the next few years bringing more young people into the shopping arena, mobile purchases will grow dramatically. Today’s teenagers and college students utilize their phones for much of their activity and shopping will grow as they get jobs, start families, etc. Retailers need to be sure that consumers have easy access to the info needed to make purchasing convenient and have templates that have as little complication as possible for the shopper to load their carts.
Absolutely. The emerging generations, Millennials and Generation Z, are inextricably linked by their smartphones. While their parents were the BYOB generations, these generations are the BYOS (Bring Your Own Screen) cohorts. Their smartphones are now their smart buttons. For example, Millennials check their smartphones 45 times per day. In addition, 86 percent of Americans state that their smartphone is their primary mobile device. In my research on Millennials I found that almost 25 percent purchased groceries online in the last 30 days.
The future success of online of m-commerce is a function of providing the following: product assortment and availability, convenience (easy, fast, transparent), value pricing and customer-friendly delivery and returns. The recent FedEx Christmas performance is evidence of the importance of hassle-free fulfillment options. Address these needs and m-commerce will take off in 2016 and beyond.
“Taking off” is relative but given the numbers for holiday and the small base, it’s clear the 2016 m-commerce number will be sharply higher than last year. The big question is whether retailers will continue to make and increase investments in digital commerce in general. There are still too many cases where retailers’ mobile experiences are way behind those of other digital (and analog) channels.
Set to take off? It already has….
I’ve seen the future in my teenage kids. Hopefully, the industry will stop making distinctions between technology platforms and simply see these all as effective reach and wrap a holistic, composite customer engagement strategy around the reality that virtually everyone has the “tricorder” in their hand that Spock used to have in the late 1960s…people…the future isn’t just here, it’s been here for a while.
Much ado about devices, but in the end, what’s on the other end is all the same entity to the consumer. Much blur between mobile devices, but retailers should continue to move towards providing as seamless as possible an omni-channel shopping experience. It’s a challenge to provide a great shopping experience across platforms, but the reality is that consumers shop where they want to shop, when they want to shop, and for online — on the device of their choice.
I definitely think that 2016 will be mobile’s year. Each year its influence grows and it’s expanding from a research tool to a checkout tool. Mobile is taking over, as Pew research found that 68% of adults had smartphones as of this past fall.
Retailers need to make sure the browsing and checkout functions are seamless. Simply put, if it isn’t easy, shoppers won’t do it. Mobile screens are smaller than computers, so it needs to still be an aesthetically pleasing and efficient experience. Step one is to have a mobile site that works well and the second is to optimize the layout and content to optimize for maximum sales and profits.
Yes, m-commerce will grow. However, because of its small size, it still has a long arduous path to follow before it will have any truly definable impact, and even longer before it will (if ever) have a critical mass. The smartphone is still our communication device, but it is far from a replacement of our computers (and faster communications with bigger screens).